RaboDirect says goodbye to managed funds product line

Wellington-based managed funds platform InvestNow has expanded its footprint in the Kiwi market with a new acquisition.

Following a robust vetting and selection process by Rabobank, InvestNow has acquired the managed funds product line of RaboDirect.

RaboDirect is the online savings business of Rabobank New Zealand.

InvestNow founder, Anthony Edmonds, says the acquisition is a massive endorsement of the InvestNow direct-to-consumer fund service, which has grown funds under management to over $100 million since launch in January this year.

"The fact InvestNow has attracted more than $100 million under management in less than eight months clearly shows the New Zealand market is ready for a modern direct online fund service," adds Edmonds.

"RaboDirect pioneered the concept of direct managed fund sales in New Zealand and InvestNow is well-placed to take over what RaboDirect have developed given we share the same underlying products on the platform, as well as strong historical management links.

Under the transition of the managed funds product line to InvestNow, current RaboDirect Managed Funds customers can have their fund holdings transferred to the InvestNow platform.

InvestNow says its platform boasts all of those funds currently offered by RaboDirect, plus a range of additional funds and managers not currently offered by RaboDirect, including the increasingly popular passive funds provided by Vanguard and the NZX-owned Smartshares.

Daryl Johnson, Rabobank New Zealand CEO says InvestNow was a logical partner to work with.

"We are pleased that our Managed Funds customers will have the opportunity to continue managing their investment portfolios with InvestNow.

According to Johnson, the decision to no longer offer the managed funds product line had been made in order to simplify the RaboDirect business model.

"As a fundamental part of Rabobank's overall business in New Zealand, RaboDirect will continue to play a key role in raising deposits for Rabobank to lend to our clients in the food and agribusiness sector," continues Johnson.

The acquisition excludes the Cash Advantage Fund and Term Advantage Fund holdings of RaboDirect customers.